QUESTION:
Can a real estate agent filing a schedule C , with 1099 from coldwell banker start her own solo 401k? she files basically as a business, with business expenses. Her only income is the 1099 , usually over 100k per year.
Answer:
Hi and yes as that is the most common way of generating self-employment income and the most popular group that open a solo 401(k) plan. Because she files a Schedule C to report her earned income from self-employment activity, her contributions to the solo 401k plan will be based on line 31 (Ne profit of loss line) of her Schedule C which is an attachment to her personal tax return (Form 1040). Click here to learn more about self-employment income and types of entities.
